BUYING AFTER DEED IN LIEU OR SHORT SALE

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Until recently the only hope of buying again after losing you house through default was with FHA, and for many that will still be the best voice.

 However, a new option is now possible.

The much maligned Fannie Mae is now allowing some people who avoided Foreclosure through either a Short Sale or a Deed in lieu of Foreclosure to get a regular Conventional Mortgage again.

The good news is that Fannie Mae will buy those loans from Banks that make them. It does not mean that all Banks will offer them.

Banks that do offer these loans will typically apply tougher standards than normal to offset what they might consider an increased risk.

To qualify you must have had good credit before and since the Short Sale / Deed in Lieu of Foreclosure.

If you can meet this requirement here are the times after which you will have a good chance to buy your own home again (at vastly lower prices and interest rates than you had before).

TWO (2) Years up to Maximum 80% Loan to Value | 20% Down Payment

FOUR (4) Years up to Maximum 90% Loan to Value | 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.

SEVEN (7) Years above 90% Loan to Value | with less than 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.

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